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Here's how flood insurance works, in the ideal. FEMA develops maps of areas near the coast or inland bodies of water and rivers. Those maps try and anticipate the likelihood of flooding, and if you build in zones that are likely to flood, you pay mandatory insurance premiums linked to the likelihood of it happening. If the property is flooded, FEMA pays out damages from the insurance program.

That's the ideal, anyway. As NBC News' Bill Dedman reports, hundreds of property owners have successfully lobbied to have the zones where their homes — or hotels — are located downgraded. Meaning that they pay less in insurance premiums, but still receive the same payout in the event of disaster.